The federal government will push ahead with a crackdown on life insurance commissions in an attempt to mend the scandal-ridden sector.
In her first speech as Revenue and Financial Services minister, Kelly O'Dwyer said the government was working to push legislation through parliament to address upfront commissions that plagued the sector.
Ms O'Dwyer, whose assistant treasurer portfolio was changed to exclude small business, flagged a series of reforms last year addressing life insurance commissions. The reforms allow the corporate watchdog to set caps for commissions that planners can receive from life insurance companies. They also include banning volume-based kickbacks, a code of practice and a widened Approved Product List through the development of a new industry standard.
Speaking at an industry summit in Melbourne, she said the corporate watchdog's review of life insurance advice found that "too often consumers received poor or inappropriate advice where an upfront adviser commission was paid.
No comments:
Post a Comment